KUALA LUMPUR (May 23): CIMB IB Research has downgraded Axiata Group Bhd to “Hold” at RM5.07 with a lowe target price of RM5 (from RM6.10) and said Axiata’s 1Q18 core EPS fell short of house and consensus FY18F expectations.

In a note today, the researhc house said Celcom’s EBITDA fell 15.8% quarter-on-quarter (q-o-q) due to higher network, marketing and other costs.

It said XL, Ncell and Smart contributed weaker earnings; Dialog’s earnings were stronger while the share of Idea’s losses narrowed q-o-q.

“Post revision, FY18F core EPS likely to fall 14% year-on-year before recovering in FY19-20F.

“Downgrade to Hold; SOP-based target price cut by 18% to RM5.00,” it said.